COVID-19: Impact on Cash Portfolios

We hope you are all safe during this extended period of sheltering at home. Life has changed immeasurably for most of us since February 13, when we published a report on COVID-19 and its impact on liquidity portfolios. Our comments in that report still apply, and on March 31, we provided additional valuable market intelligence in a half-hour webinar providing our latest advice and insights. A replay is available by clicking the image below or here.

The webinar reviews the impact of fiscal relief measures from Congress and the dramatic steps the Federal Reserve has taken to stabilize financial markets. From overnight repo, to Treasury and agency mortgage-backed securities, to commercial paper, corporate bonds and asset-backed securities, the Fed is leaving no stone unturned. To help you manage through this turmoil, Director of Investment Research Lance Pan and I discuss strategies to ensure the liquidity and safety of your organization’s cash assets, as well what to expect in terms of returns.

Granted, things feel a bit like they did in 2008, with a cascade of rate reductions, quantitative easing, massive fiscal stimulus, and incentives for banks to pump out liquidity and financing. We are staying on top of every development, and our Capital Advisors Group portfolio managers, credit professionals, and trading teams – working from home with secure remote communications technology – have continued uninterrupted management of all clients’ portfolios.

We are confident that, armed with the best current insights and information, treasury professionals will be able to keep a steady hand at the wheel. Please don’t hesitate to contact us if you have any questions, and in the meantime be sure to watch a replay of our webinar.

Best Regards,

Ben Campbell
CEO